The Primary Purpose of a Stock Split Is to

question 105

Multiple Choice

The primary purpose of a stock split is to

• A) increase paid-in capital
• B) reduce the market price of the stock per share
• C) increase the market price of the stock per share
• D) increase retained earnings

---

Definitions:

Beta

A measure of a security's volatility in relation to the overall market, indicating the security's risk compared to the market average.

Sensitive

Quick to detect or respond to slight changes, signals, or influences.

Standard Deviation

A statistic that measures the dispersion or variability of a dataset relative to its mean, often used in finance to represent the volatility of an investment.

Correlation

A numeric value showing how much two or more variables change in connection with one another.